Fidessa sees improved pipeline, but forecasts only modest growth

28 April 2014 | 807 views | 0Source: Fidessa

Fidessa group plc (LSE: FDSA), provider of high-performance trading, investment
management and information solutions for the world's financial community, is
releasing its interim management statement for the period from 1st January 2014
to date.

Fidessa has continued to see improvement in the trading conditions faced by itscustomers across the markets in which it operates, and this is being reflectedin Fidessa's current deal pipeline. As reported with the 2013 results, andconsistent with the duration and depth of the downturn, this improvement issomewhat uneven and means that many customers are still not able to makeinvestment decisions with confidence. As expected, the improvement is graduallyresulting in a reduction in the headwinds being faced, allowing the growthbeing generated through sales of derivative platforms, service-based platformsand regional expansion to flow through into overall revenue growth rather thanbeing masked by the decline in equities. Whilst a positive effect from this isexpected for 2014, Fidessa's recurring revenue model has the effect that someof the impact from customer attrition in 2013 will flow through into 2014, andmeans that modest constant currency growth is expected in 2014.

Looking further ahead, Fidessa believes that as stability and opportunityreturn to the markets, the headwind reduction, coupled with further openings asits multi-asset initiative gains momentum, will enable it to return to growthlevels closer to those seen in the past. Fidessa remains excited by thepotential of its service-based offerings across all asset classes and believesthat it will continue to play an important role as the customers focus onefficiency, transparency, compliance and performance.

Fidessa continues to have a strong balance sheet with strong reserves, no debt,strong cash generation and substantial levels of recurring revenue.